What happened this week: We are now finally in the peak holiday season and for the next 2-3 weeks nothing will change this. Consequently you find hardly anyone in Europe even to speak to, except some colleague which has to maintain position also during August. For the coming weeks nothing will change the situation over here. It will only be interesting if tanners will really sit relaxed in their holiday resorts and not bother about the market or if one or the other will stay in touch to check the market developments. Most final discussions with customers confirmed, that they are also cautiously optimistic about the rest of the year. Most  established companies admit, that their order book for the months to come is reasonably filled, but – and this is the worry of almost everyone – at prices which would not permit higher raw material prices. This applies not only for European tanners, but also the overseas customer base, with the massive price pressure from the consumer markets and

the retailers still dominates discussions about business and sales. However, as anyone knows well, the raw material market does never take too much notice about finished product price restrictions. For the time being  and this due to the holiday season demand remains just focussed on Asia and some other weird destinations. The firmer USD has made German hides also again more attractive again and paved the way for some sales which under normal circumstance would never been imaginable. So sales also this week were far away from large, but for the time of the year acceptable numbers were moved again. The demand has again almost exclusively concentrated on cows and ox/heifers. In their attempt to keep raw material prices under control also lows grades found very good interest. Due to the absence of the European tanning industry bulls were very quiet, what is a relief as the low kill would not have permitted any additional demand. Price did not change this week, but the firmer USD helped to bring € revenues back to acceptable levels. Shipments for the garment

Tanners are running smoothly this year, what is a good help as otherwise hardly any hide would leave the warehouses in August. The concentration of holidays in Europe this year is really a nightmare for the throughput for the EU customers. The kill: The good news is, that the kill has not fallen any further. The bad news, that it is still on record lows. The hot weather and the holidays does not allow any change in the situation in the coming weeks. Just towards the end of August the end of the school holidays in the North will hopefully generate a bit more production. What do we expect?  There is little or nothing to add to the statements we made in the previous weeks. Due to low supply the market is in a solid state without a great risk for an outbreak as long as the holiday season persists. Further support is coming from the firmer USD rate and from the consolidated markets overseas. So, for the time being the market remains solidly trapped on the level we are on. At present is the low kill commanding and only at the end of August we will be able to see how the market will digest better supplies – most likely good.